Combined Benefit of Lower Tax Slabs & Rebate
The
table in the image shows the total tax benefit a person can get at
different income levels after the tax brackets have been lowered and the
rebate (up to ₹12 lakh) is applied.
For
salaried individuals, the tax-free limit further increases to ₹12.75
lakh, owing to the standard deduction of ₹75,000. This expanded
exemption limit is achieved by combining revised slab rates with an
enhanced rebate system.
Key Highlights of the New Tax System
No Tax Up to ₹12–12.75 Lakh
- If you’re self-employed or have business income, you don’t pay any tax if your income is under ₹12 lakh.
- Salaried employees pay no tax up to ₹12.75 lakh after claiming the standard deduction.
- Significant Savings for Middle-Class Families
- Households will have less tax to pay.
- More money will be left for daily needs, lifestyle expenses, and future goals.
- You can save and invest more easily.
Simple & Easy-to-Understand Tax System
- The tax brackets are now clearer.
- It’s easier to plan your taxes.
- The system is more transparent and straightforward.
Important: The income
tax exemption limits remain unchanged. Tax is calculated based on the
following slabs for individual income per annum.
Important Note
These
tax slabs apply to individual income per annum. The tax exemption limit
remains at ₹4 lakhs (0% tax). For income above ₹4 lakhs, tax is
calculated on a progressive basis, meaning only the income within each
slab is taxed at the corresponding rate, not the entire income.
Updates:
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